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Govt passes 'golden rule' balanced budget amendment

The government of Silvio Berlusconi (pictured) on Thursday approved a "golden rule" proposal to codify the government's obligation to pass balanced budgets in the country’s constitution, the latest effort to tackle a debt crisis.

AP - Italy’s government is pressing ahead with a proposed constitutional amendment calling for a balanced budget, a day after the Senate approved a much-revised austerity plan to calm financial markets.

The Cabinet on Thursday signed off on the proposed amendment. It must be approved by a two-thirds majority in each house of Parliament.

Economy Minister Giulio Tremonti called for a “constructive and quick” parliamentary discussion and predicted it would ultimately pass.

The Cabinet met a day after the Senate approved a separate austerity package aimed at reducing the deficit by more than €54 billion ($70 billion) over three years through budget cuts, tax hikes and changes to Italy’s costly pension system.